NGPF Unit 8: Insurance

What is risk?

• A situation involving exposure to danger, harm, or loss.

• A method of investment that guarantees profit.

• A type of insurance policy.

• A strategy to avoid all potential dangers.

What is the minimum liability limit?

• The highest amount of auto insurance coverage one can have to be legally allowed to drive in each state.

• The lowest amount of auto insurance coverage one can have to be legally allowed to drive in each state.

• The average amount of auto insurance coverage required by most states.

• The optional amount of auto insurance coverage that drivers can choose to have.

What is life insurance?

• Insurance paid to named beneficiaries when the insured person dies.

• A type of insurance that covers medical expenses.

• A policy that pays for property damage.

• Insurance that provides income during retirement.

What is insurance fraud?

• An act on the part of either the buyer or seller of an insurance contract in an attempt to gain money illegally.

• A legitimate claim made by an insured party.

• A process of evaluating the risk of insuring a person or property.

• A method used by insurance companies to reduce payouts.

What is a deductible in insurance?

• The amount of money you agree to pay towards your losses before your insurance coverage will begin paying.

• The total amount your insurance company will pay for a claim.

• The percentage of the claim amount that you must pay out of pocket.

• The maximum amount your insurance will cover for a specific loss.

What is a premium in insurance?

• A fee paid to the government for insurance coverage.

• The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time.

• A one-time payment made for a lifetime insurance policy.

• The total amount of claims paid by the insurer in a year.

What is an actuary?

• A person who compiles and analyzes statistics to calculate risk and determine insurance rates and premiums.

• A financial advisor who helps clients manage their investments.

• A medical professional who assesses health risks and provides treatment plans.

• A software engineer who develops algorithms for financial modeling.

What is a quote in insurance?

• An estimate of what premium you would pay for a certain insurance coverage plan.

• A detailed report of all claims made in the past.

• A summary of the insurance policy terms and conditions.

• A list of all available insurance providers in the market.

What is an underwriter?

• An employee of an insurance company who evaluates an individual's risk factors and assigns premium amounts.

• A financial analyst who manages investment portfolios.

• A legal advisor who provides counsel on insurance policies.

• A sales representative who sells insurance products directly to customers.

What is renters insurance?

• A type of insurance that covers the building structure for landlords.

• A form of property insurance, available to renters, that covers losses to their personal property and protects the insured person from liability claims.

• An insurance policy that only covers natural disasters for renters.

• A type of insurance that provides coverage for home appliances only.